The big, wealthy oil tycoon Blake Carrington and his former secretary, Krystle Grant Jennings are getting married. Krystle's ex-boyfriend, Matthew Blaisdel, who's been working as a geologist on one of Blake's oil rigs in the Mideast for a year and a half

Matthew gets a little visit from an old acquaintance, Walter Lankershim. Walter asks for money, because he's in trouble. He's lent money from Blake to drill for oil, but he haven't made any strikes. Matthew refuses to give him any money. Matthew goes to visit his present wife, Claudia, who's been in a mental institution for 18 months, but he learns that she's much better, and she's been released. Matthew, Claudia and their daughter, Lindsay, decides to start over again as a family. Blake and Krystle get to talk about their disagreements, and starts planning a big wedding. There's an accident on Walter's oil rig and he finds out that somebody has been sabotaging. He's convinced that Carrington has something to do with this.

Blake and Krystle finally get married. Blake talks a bit with his son about the homosexuality. There's a big wedding at the mansion, and among the guests are Cecil Colby and his nephew Jeffrey Broderick ""Jeff"" Colby. Cecil is a big oilman like Blake, but he's much bigger, and Blake's company, Denver-Carrington, is just a newsstand compared to Cecil's ColbyCo Oil. Walter blurs into the big wedding, furious about the sabotage on his rig. He and Blake fight about this, and Matthew takes Walter's side in the fight, which leads to Blake firing Matthew.

Blake and Krystle have to break off their honeymoon, because Blake's in a bit of a crisis at work, and he has to go home to do business. Walter gets in trouble with the workers on his rig, but he gets it all straightened out, and both Matthew and Steven get a job there. Blake doesn't like this. Krystle has problems getting along as a wealthy woman, with all the servants and the money. Matthew and Claudia fight alot, they both think it's difficult to start this new life. Cecil and Fallon have negotiations of their own. Cecil is going to help Blake out of his problems, if Fallon marries Jeff.

Blake apologizes to Walter and Matthew about their fight at the wedding and asks Matthew to come back to his old job. He also invites them to a dinner party at the mansion. During the dinner, many things happen; Steven and Claudia meet and get along really well, Matthew has a long talk with Krystle and tells her that he's still in love with her, and Cecil and Fallon start realizing their plans. Cecil offers to help Blake and Fallon starts hitting on Jeff.

Cecil helps Blake with his money problems. Jeff and Fallon get married. Blake's driver, Michael Culhane, who's been sleeping with Fallon, is a bit jealous, because she won't take him anymore. Blake hires him to do undercover work for Denver-Carrington, and he starts flirting with Cecil's secretary. Blake warns him about being unloyal. Steven gets a visit from his gay friend, Ted Dinard, from New York.

Michael still tries to win back Fallon and tells Blake about Cecil and Fallon's agreement. Blake and Fallon argues about this. Steven is taunted on the job for being gay. Lindsay has a boy over to study, he tries to put the moves on her and she gets upset and runs off. Blake wants to have a child with Krystle. Matthew invites Steven to a dinner party at his house. In the end Steven and Claudia secretly start kissing.

Walter takes Steven to a bordello to try to ""straighten him out"". Something goes wrong at Matthew and Walter's rig, Steven is blamed for sabotaging, and though he's innocent, he looses his job. Blake's plan now is to take Walter and Matthew's rig when they're in trouble. Krystle doesn't like Blake's methods in his work. She pawns an emerald necklace and loans Matthew the money to help him. She makes a false copy so Blake won't understand it's gone. In the end, Matthew and Krystle kiss, but Krystle breaks it off and leaves.

Matthew finds the guy who really sabotaged the rig. Steven is offered his job back, but turns it down. Claudia learns about Matthew's relationship with Krystle. Lindsay is upset, thinking that her parents HAD to get married just because of her when she was born. Steven's boyfriend Ted tries to contact him, but Fallon does everything she can to stop it and keep them apart. Blake finds out that Krystle is on birth control pills and assumes she's not interested in having a baby. He gets both mad and drunk and forces Krystle to a rough sexual intercourse.

Blake apologizes to Krystle about his behavior, and she forgives him. Michael has found out about Krystle's pawning and tells it to Fallon. Matthew and Walter finally strike oil. Claudia goes out with a guy she meets and almost has an affair with him. She manages to pull out, but later she has an affair with Steven. Lindsay starts finding out about it.

Jeff comes home after being in the Middle East, but he and Fallon have lots of arguments. Steven decides to get some more education and to start working for Blake, and he moves to his own apartment. Blake finds out about Michael's relationship with Fallon and hires some people to beat him up. Lindsay finds out everything about her mother's affair, which is still going on.

Blake learns about Krystle's ""pawning"". He doesn't tell her, but he starts frightening her with hints. Jeff now knows that his marriage to Fallon is only a part of a deal, and he does everything to embarrass his wife. Especially during a birthday party Blake throws for Cecil, when he yells out to everybody what he thinks of them. Ted still tries to get into Steven's life again. Matthew manages to pay the money back to Krystle, and she wants to buy her necklace back, but the pawner has already sold it.

The butler, Joseph Aynders, shows Krystle that he doesn't like her, and he means she doesn't belong in the Carrington family. Krystle understands that Blake is the one who bought the necklace, to show her that he had found out. They have a little argument about this, and Krystle decides that life with Blake is impossible and leaves him. Steven tells Claudia he spent the night with Ted, but now he wants to quit his relationship with both of them. Steven and Ted are just saying good-bye and hugging each other when Blake discovers it. He gets furious, because ""the gay"" is now standing there in his house with his arms on his son. He attacks Ted and there's a fight. Ted trips, hits his head, and dies.

Blake is arrested for the murder of Ted, and a big trial comes up. The prosecutor is Jake Dunham, an old friend of Claudia and Matthew, who does not like Blake. Krystle hears about the trial and decides to come back to Blake to be with him, and then solve their problems later. Fallon is afraid and to help her father, and she lies in court. Steven tells the truth about what really happened, though.

Blake's trial continues. Both Joseph, Claudia and Krystle have to testify. When Claudia testifies, she has to tell that she had an affair with Steven, and then Matthew finds out about it. He makes rebellion in the court room, attacks Blake and has to go to jail. Claudia packs her stuff, runs away, and takes Lindsay with her. On the way, they collide and get serious injuries. In the final scene, Jake Dunham calls in a new witness, and in walks a mysterious woman. It turns out to be Alexis Morrell Carrington - Blake's first wife.

Alexis testifies against Blake, and tells about an incident several years ago, when Blake discovered her in bed with her lover, Roger Grimes. Her testimony proves that Blake is a violent man, and things doesn't look too good. Fallon and Blake welcome Alexis with hate and rudeness, but Steven is friendly to her. Claudia wakes up in the hospital and discovers that Matthew has run off with Lindsay.

Blake is convicted to two years unconditional prison. Blake first wants to appeal, but changes his mind. We can now see the first sign of Alexis being the ""big bitch"" in the series. Both she and Blake hate each other, and she decides to move into an old house which once belonged to her in Blake's garden. Blake fires Michael. Claudia tries to track down Lindsay and Matthew, but with no luck. Blake tries to talk to Steven, but it ends with a fight. Krystle discovers she's pregnant.

Claudia is released from the hospital. When she comes home, she tries to kill herself by taking an overdose with pills, but she's saved by Blake's friend, dr. Nick Toscanni. It turns out that Nick's secret plan is to get back at Blake for something that happened in the past. Fallon and Jeff decides they want to have a baby. Claudia moves into the Carrington mansion. Blake tries to get Alexis out of his property. Alexis tells Steven that he is Blake's only child and that Fallon's father is another man.

In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is ""another page in his appointment book."" Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle to the ground. She is rushed to the hospital, in danger of losing the child.

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is "another page in his appointment book." Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

Blake and Jeff attempt to arrange a meeting with Rashid Ahmed to obtain assistance in releasing their overseas oil tankers. Alexis leaves for Rome to meet Ahmed, a former lover, under the guise of helping Blake. A despondent Krystle refuses Nick's psychiatric treatment. Claudia has recovered sufficiently to maintain her own apartment and take a job with Denver-Carrington. Cecil Colby invites her to dinner to pry company information from her. Fallon, learning she is pregnant, makes plans for an abortion and asks Jeff for a divorce. He agrees, but only after she has their baby. Fallon tells Nick she is in love with him. Alexis calls Blake to Rome, explaining she has arranged a meeting with Ahmed. Her true motive is simply to be alone with her former husband.

En route to Rome to meet Rashid Ahmed, Blake calls Krystle in yet another attempt to convince his despondent wife to see psychiatrist Nick Toscanni. She calls the doctor for an appointment, and Fallon is immediately jealous. Jeff begs Fallon to cancel her abortion. She confesses that she became pregnant only to compete with Krystle and further states she never loved him. Their marriage was strictly a business deal to benefit Blake. In Rome, Blake meets Alexis at Ahmed's villa. While he's rubbing suntan lotion on his ex-wife, a photographer, hired by Alexis, snaps photos. At home, a shattered Krystle sees the suggestive pictures in a gossip paper and bursts into tears. Nick comforts her and her grief soon turns to passion.

Krystle almost sleeps with Nick, but stops the whole thing. Nick says he's in love with her, and that he wants her, but she won't cheat on her husband. Blake comes home and tries to tell her the paparazzi photo is not what it looks like, but she won't believe him. Jeff is angry with Fallon because of her abortion plans and wants to divorce her. Fallon cancels the abortion. Steven and Sammy Jo get married, and Steven decides he's interested in car racing.

Steven and Sammy Jo return to the mansion and tell everybody except Blake that they are married. We get the impression that Sammy Jo only married Steven for his money. Alexis does everything she can to make Krystle think Blake had an affair in Rome. Nick tells Krystle he's deeply in love with her and persuades her to leave Blake. Ray Bonning, who represents Rhinewood starts interfering in the way Blake controls his team and wants to buy the whole of it. In the end, a car drives by Blake and Jeff and someone throws a bomb at them. They survive, but it leads to blindness for Blake.

Blake is frustrated because of the blindness. He's also sure that Bonning is behind the bomb attack and settles plans to get revenge. Krystle wants to wait with telling Blake about her divorce plans until he's better. Blake wants Fallon and Jeff to be friends and stay together and have their baby in peace. Fallon tells Alexis about her affair with Nick, and that she's deeply in love with him. She's also found out about Krystle's relationship with Nick and Alexis is going to help her get Krystle out of their lives.

Blake has been doing some research on Nick and finds out that Nick's brother Giani worked for Denver-Carrington, but was killed in the Mideast problems. Alexis starts trying to help Fallon in her ""battle"" against Krystle but Fallon doesn't want her help. Blake goes to a kind of trial against Logan Rhinewood, but with no luck. Fallon and Jeff are not getting along; Jeff doesn't care about Fallon, and Fallon is deeply in love with Nick. Blake gets an anonymous letter saying: ""Why do so many frustrated wives end up in bed with their shrinks? Ask your wife."" Blake also gets his sight back, but the only one who gets to know about it is Joseph.

Blake pretends he's still blind. Everything about Nick and Krystle is out in the open. Blake and Nick talks about the death of Nick's brother. Krystle brakes up with Nick and plans to leave Denver. Sammy Jo starts taking advantage of being a ""rich mans wife"". Blake does not like the idea of Steven being a racer driver and offers to adopt Jeff. Cecil, who has been helping Claudia finding Lindsay blackmails her to get information from Denver-Carrington if she wants to get more information. Blake persuades Krystle to stay in Denver when she tries to leave.

Blake announces that his sight is back. Alexis sleeps with Cecil. Fallon and Nick are friends again and wants to be together as soon as the baby is born. Steven and Sammy Jo decides to leave the mansion. Fallon and Alexis throws a party for them. Sammy Jo gets drunk and embarrasses the Carringtons. Claudia and Jeff seems to be getting good along. Everything about Cecil being Fallon's father is out in the open between Alexis and Fallon. In the end, Alexis and Fallon has an accident with their car and Fallon is left unconscious.

Fallon is brought to the hospital and gives birth to a boy. The baby is very weak and the chances for survival are small. Fallon is deeply depressed after finding out about Blake not being her father, and doesn't want to see nor Blake or Alexis. Claudia sleeps with Jeff and steals his key to the archive in Blake's Denver-Carrington. Krystle talks to the groundsman at the mansion and finds out about Alexis' shooting when she lost the baby. Alexis and Krystle have a real ""catfight"" in Alexis' studio. Alexis' detective, Morgan Hess finds out that Krystle is not legally divorced from her former husband, Mark Jennings. Sammy Jo leaves Steven.

Fallon and Jeff's baby has a surgery and things are looking better. Jeff discovers Claudia's ""leak"" to Cecil. Matthew and Lindsay disappears without trace in the jungle. Blake finds out about all the ""father"" trouble. Alexis blackmails the groundsman to tell Krystle he was wrong about Alexis shooting the horse, though Krystle won't believe him. Fallon and Jeff argues about custody of their child.

Blake gets a meeting with Logan Rhinewood set up. Steven goes to Hollywood and finds Sammy Jo modeling in a cheap studio. Blake and Cecil takes a blood test and it proves that Blake is Fallon's real father. Alexis and Cecil start flirting with each other. The last news about Matthew and Lindsay is that they are dead. When Claudia finds out, she blames Cecil and wants to shoot him. Krystle tries to stop her, and in their struggle, the gun goes off.

Claudia is badly hurt after the shooting and has an operation at the hospital. The police starts asking questions and thinks Krystle is responsible for the accident. Blake finally gets to talk to Rhinewood, though it's just by using a microphone, so Blake can't see Rhinewood. What Blake doesn't know is that the man he's talking to really is Cecil. Cecil and Alexis sleeps with each other again and Cecil proposes to Alexis. Claudia survives but has talking problems and does not remember the accident.

Claudia keeps accusing Krystle about her relationship with Matthew during his marriage. Steven is on his way home from Hollywood when he picks up a guy who wants a ride to Denver. When they get there, the guy tries to blackmail Steven. Steven beats him up, and is arrested for assault. Cecil has chest pains and seems to be getting heart problems. Blake accuses Alexis of shooting at Krystle's horse and threatens her.

Fallon and Jeff's baby, Little-Blake Colby, is brought home. A nurse called Susan is hired to take care of him. Alexis accepts Cecil's proposal and they start making wedding plans. Claudia finally remembers exactly what happened the night she got injured. Rashid Ahmed wants to do more business with Blake.

Alexis prepares to have the wedding reception in Blake's garden. Rashid Ahmed's brother Farouk comes to Denver-Carrington to offer Blake a deal, but Blake turns it down. To get back at him, Farouk tells Nick that Blake is responsible for his brother's death. Steven leaves the mansion. Blake considers buying a big ranch and goes there with to look around. Blake goes alone for a ride in the mountains at the ranch. Nick follows him and starts accusing him for the brother's death. There's a big brawl, but they both calm down, and Nick leaves Blake alone. Blake's horse is then attacked by a snake. Blake gets thrown off and disappears down the hill. Nick watches Blake lying there unconscious, but leaves him. Little Blake disappears. Cecil has a heart attack when he's in bed with Alexis.

Krystle and Alexis, trapped in a burning cabin far off in the woods, find the door has been locked--from the outside. Mark, who has come to see Krystle in this remote setting, dramatically rescues the two women, who are rushed to the hospital. Blake meets with Steven to discuss the upbringing of little Danny; Blake remains convinced that a homosexual cannot provide a proper role model. A pregnant Kirby wrestles with the decision to tell Jeff he is not the father of her baby, while Fallon learns Adam is responsible for the mysterious illness that almost cost Jeff's life. Blake, suspecting that Mark's timely arrival at the burning cabin is more than coincidence, provides evidence to the police and Mark is arrested.

Mark is charged with attempted murder and arson; Alexis tells Blake and the police his motive was revenge. The other suspects-McVane, Hess and Adam, are questioned and released. After Alexis destroys Fallon's relationship with Mark, Krystle suggests she is seeking revenge because Mark rejected her. Kirby breaks down and tells Krystle her baby is not Jeff's; an unknown man in surgical garb tries to smother Alexis. Blake and Jeff receive a frantic call from Joseph, who is muttering incoherently. At the bungalow where Kirby was born, Blake and Jeff find the disturbed butler with a gun. Before they can stop him. Joseph pulls the trigger and kills himself.

Alexis receives a note written by the late Joseph, stating that he indeed set the fire to kill her because of the lives she's ruined with her manipulations. Alexis laughs it off, claiming she never intended to tell Kirby her mother was an ""attic nympho."" Blake lies to protect the girl, telling Kirby her father was worried Alexis would take control of Denver-Carrington and tried to kill her out of loyalty to his employer. When the murder attempt failed, the butler tragically killed himself. Claudia is released from the sanitarium and she and Steven make love. When Steven learns of Blake's plan to sue for custody of little Danny, he becomes enraged. Both men lose their tempers and wrestle each other to the ground.

Kirby angrily demands that Alexis divulge the real motive behind her father's murder attempt. In a fit of rage Kirby tries to strangle Alexis. Steven finds a social worker snooping around his apartment and orders her to leave. The incident later is brought up at the custody trial, and the woman describes Steven's behavior as a typical homosexual reaction. Steven's attorney and roommate Chris Deegan brings to the court's attention that Blake has previously been convicted of murdering a gay man and harbors a blind prejudice against homosexuals. Alexis testifies that Blake purchased the baby from Sammy Jo. When Blake loses his composure and lashes out at Alexis, the judge orders him to control himself and adjourns the hearing.

Alexis arrives home from the trial to find her apartment ransacked. Police Lt. Merrill speculates there may be a connection between the break-in and the recent attempts on her life. Fallon testifies on Steven's behalf. When she leaves for Montana, Alexis tells Adam that if her trip has anything to do with the poisoning incident, he's on his own. On the witness stand, Sammy Jo fabricates tales of Steven's sexual promiscuity. That night, Claudia barges into Sammy Jo's hotel room and demands she retract her courtroom statements. Claudia tells Steven she has devised a fool-proof method for him to retain custody of his son.

Following through on the plan to retain custody of Danny, Steven and Claudia fly to Reno and are married. When the judge receives the assurance they will jointly rear the child, the suit is dismissed. Attempting to win Krystle back, Blake offers her a public relations job at Denver-Carrington. Adam asks Alexis to sign three routine documents, but the second and third pages are positioned so only the signature line is exposed. When alone, Adam crumples the first page and carefully places the other two in his pocket. Fallon and Jeff investigate the poisoning incident in Montana. They are stunned to learn the name of the prosecuting attorney was Michael Torrance--the name Adam used before arriving in Denver.

At the store where he bought the poisonous mercuric oxide, Adam distracts the salesman and substitutes the authentic purchase order with the document Alexis unknowingly signed. Bill Rockwell, the retiring head of Denver-Carrington's public relations department, breaks the news to his disappointed assistant, Tracy that Krystle has been given the position she had planned on assuming. Mark proposes marriage to Krystle. When she refuses, he attacks her. Alexis is shocked to find her signature on the purchase order for the deadly chemical compound. She quickly realizes Adam has framed her. Blake threatens to call the press if she doesn't return Jeff's stock and cancel the corporate merger.

Jeff storms into Alexis' office and accuses her of attempting to poison him. Her claims of innocence fall on deaf ears as Jeff forces her to sign back his Colbyco stock. After an intruder attempts to enter Alexis' apartment, Mark takes a job as her bodyguard. Adam's doctor in Montana explains to Alexis that the drugs Adam used in his youth can distort judgment. Alexis informs the board members that the sudden merger cancellation was based on her assessment of Denver-Carrington's lack of creative growth. Farnsworth ""Dex"" Dexter, the sharp-minded son of an important board member, surprises Alexis with a passionate kiss and suggests they form a business partnership.

In her new position, Krystle launches a publicity campaign to counter Alexis' slanderous remarks against Denver-Carrington. Jeff rejoins Blake's firm. Dex continues his campaign to win Alexis. Jeff learns Kirby was pregnant when they wed and is shocked to learn that Adam raped her. Fallon accompanies Blake and Krystle to L.A. to consult an architect about expanding La Mirage. While at the track, Fallon is swept off her feet by a millionaire playboy, Peter DeVilbis.

At Alexis' office, Dex discovers a confidential file marked ""Tar Sand"" and beats her to the contract. Later, he offers her a 60-40 split. An enraged Jeff locates Adam at the summit of the Carrington Plaza. After exchanging vicious insults and violent punches, Adam tumbles halfway over the edge. As Jeff is about to finish him off, Adam frantically explains he had no idea he fathered Kirby's child, and Jeff allows him to crawl to safety. Jeff intercepts Kirby as she is about to leave for Paris. Blake proposes marriage to Krystle, who happily accepts.

Kirby proposes that she and Jeff divorce. Adam tells her he wants to be a father to their child. Dex and Alexis make love. Jeff is jealous to see Fallon with Peter DeVilbis. Peter's champion racehorse, Allegre, is up for sale, and Blake decides to buy the mare. At the Carousel Ball, the high point of Denver's social season, Blake and Krystle announce their intentions to remarry. Steven warmly wishes his father the best. Blake is touched by the gesture and welcomes his son back into the family.

Nervous about leaving her new job, Krystle gives Tracy final instructions as she prepares for her honeymoon in Rio de Janeiro. Tracy persuades Krystle to give her the company credit cards as well as the keys to the confidential files. Peter arrives at La Mirage asking for Fallon, and makes a pass at Claudia. As the wedding guests arrive, Adam demands Kirby tell their child the true identity of his father. Learning she intends to divorce Jeff, Adam asks Kirby to marry him. Krystle and Blake exchange vows and are pronounced husband and wife.

While Mrs. Gordon is walking Danny in the park, a strange man greets the child by name. Recalling little Blake's kidnapping, Claudia moves the family into the safety of the Carrington mansion. Laird discovers Tracy scanning confidential company files. Kirby and Jeff sign their divorce papers. After shelling out over $2 million to work on one of Peter's hotels, Ernesto the architect demands to know when he will be repaid. He wonders if the money is going toward Peter's ""habit."" Kirby's hand suddenly begins to swell uncontrollably, making it necessary to cut off her wedding ring

Kirby is diagnosed as suffering from hypertension. Adam is startled to find her slumped against the piano. After learning she will accept his marriage proposal, Adam confesses raping her to a shocked and disgusted Blake. Peter offers Fallon cocaine. Tracy purposely misplaces an urgent business memo from Blake to Krystle. As an agitated Blake awaits his publicity director at an important meeting, Tracy cunningly shows up and 'saves the day.' Allegre the racehorse is discovered missing. Claudia receives a box of violets with a note reading, ""Remember? Lancelot."" Trembling with fear, she recalls that Lancelot was her late husband's nickname.

Blake receives a note requesting $2 million in diamonds for the return of his racehorse, Allegre. Peter proposes to Fallon and then makes another pass at Claudia. Dex and Alexis close a lucrative oil contract. While pouring herself a glass of water, Kirby's hand begins to tremble uncontrollably. Diagnosed as suffering from hypereflexia, a condition that may lead to convulsions or heart failure, Kirby remains hospitalized while Adam keeps an all-night vigil in her room. Suddenly, her body becomes rigid and goes into convulsive seizure.

Peter has made arrangements for the ransom to be delivered to Allegre's captors. Blake grows suspicious of his refusal to call in the police and is unhappy about Fallon's decision to marry him. Kirby suffers a second seizure. To save the baby's life, the doctors decide to operate. Congressman McVane attempts to enlist Mark's help in blackmailing Alexis. Claudia receives another box of violets from 'Lancelot.' Beset with guilt, Adam confesses to Blake that he, not Alexis, attempted to poison Jeff. As Blake struggles to understand, Kirby's doctor appears to report that Kirby is alive, but they were unable to save her baby girl.

As Fallon plans to wed Peter, Claudia advises her of his womanizing. Fallon dismisses Claudia's concern, however, as she has with all the others who question the wisdom of her marrying Peter. Tracy sleeps with a newspaper reporter in exchange for a damaging story to scandalize Krystle. After Allegre is safely returned, Blake questions Jack Crager, the horse's trainer. After their meeting, Jack quickly phones Peter, who instructs the horse trainer to disappear until further notice. Distraught after learning that Peter has suddenly left the country, Fallon runs into the path of an oncoming truck. Jeff and Blake look on in helpless disbelief.

With the family at the hospital waiting for Fallon to regain consciousness, Blake races to the airport to intercept Peter. Passing through security, DeYilbis sets off an alarm and the guards find a cache of drugs in his briefcase. Blake blocks his escape, and Peter is taken to jail. Blake is offered an important political post. McYane informs Alexis of the appointment. He is sure she will try to topple him and wants to be there when she does to blackmail her. Kirby accepts Adam's marriage proposal. Fallon regains consciousness and finds she is paralyzed.

Fallon's doctors believe her paralysis to be psychosomatic. To prevent her from marrying Adam, Alexis offers Kirby a job in Paris. When the ploy fails, Alexis tells the girl her mother has long been confined to an institution for the criminally insane. Kirby had believed her mother to be dead. Fallon, under the care of physical therapists and a doting family, remains unable to walk--until her child's life is in jeopardy. At a family dinner to celebrate Fallon's recovery, Claudia receives a message containing a family snapshot taken by Matthew. She determines to unravel the mystery behind her tormentors.

When Krystle's doctor reveals she is pregnant, both she and Blake are overjoyed. Krystle insists Blake go ahead with a scheduled business trip to Hong Kong and sends Tracy to cover for her. Upon arrival, Blake is chagrined to learn the China Seas deal is to be negotiated by Rashid Anmed, a notoriously under- handed character. Fallon begins to suffer from painful, recurring headaches. Kirby is torn between finding her mother and leaving matters as they are. Claudia and Steven visit the site of Matthew's accident in the Peruvian jungle. Seeing the wreckage, Claudia is finally satisfied her husband and daughter are dead. Once home, however, she receives a phone call from Matthew.

Blake and Ahmed close their international China Seas oil deal. Alexis learns of the coup and makes plans for a counterattack. Blake confronts reporter Grayson regarding his deceptive behavior with Tracy, and then quits his political post. When Tracy makes sexual advances toward Blake, she is fired. Steven is suspicious to see Dex in Alexis' office bearing violets - the same flowers being sent mysteriously to Claudia. Kirby's search for her mother leads her to the cemetery and her mother's grave. In Hong Kong to do business with Ahmed, Alexis rekindles their former romance. Claudia receives yet another mysterious call, this time from Dex.

Dex follows Alexis to Hong Kong and is enraged to find her with Rashid, with whom she has just concluded a business deal to ruin Blake. Kirby explores the reasons behind her father's death. After reading his suicide note, she purchases a handgun. Fallon is overcome by a seizure. Dex and Tracy make love. When the mysterious caller phones again, Krystle takes the call and realizes it is a tape recording of Matthew's voice. Matthew's mother, who had long resented Claudia, sold the tape to an unnamed buyer. Blake pays a visit to Morgan Hess and spots the tape near the phone. Hess explains he intended to frame Alexis, but Blake does not believe his story.

Tracy and Krystle exchange angry words. As Alexis monitors all of the television news programs, Mark suggests she's waiting to see some late-breaking news-news she already knows. Blake learns Kirby has unearthed the truth about her father and is anxious to demonstrate he only lied to fulfill Joseph's wishes. As little Blake's birthday party gets underway, Krystle tells a stunned Alexis that she is expecting a baby. Alexis recovers quickly and dismisses Krystle with the fact that she's been through four pregnancies. Krystle catches the slip, and Alexis explains one pregnancy miscarried. Fallon and Jeff announce their plans to remarry. The Carringtons are stunned to hear that Rashid Ahmed has created an international incident by announcing that Blake is planning a military attack on another world power involved in the China Seas oil deal.

As Blake confronts Alexis with his knowledge of her plot with Rashid Ahmed, Mark, on the balcony, listens with interest. Alexis is prepared to buy his silence. Blake travels to Hong Kong and learns Ahmed has left the country, leaving Denver-Carrington's money with the government. In Joseph's old bungalow, Kirby confronts Alexis, but her plan to kill her is foiled. After Mark successfully blackmails Alexis, McVane arrives and reminds him they're in this business together. Nervous that McVane will learn of his $100,000 hit on Alexis, Mark quickly opens an account at a local bank, as McVane looks on.

Blake's fortune now rests on the decision of a group of bankers, who will decide whether to extend his loan or call in the debt immediately. Alexis hires Tracy to obtain confidential information on Averell Dawson, Blake's banker. Shortly thereafter, Blake learns his extension has been denied. Jeff and Fallon celebrate their engagement. Sammy Jo arrives unannounced at the mansion, claiming she's come to visit her son. Mark questions Alexis' motives for destroying Blake and is reminded he's been paid to keep his mouth shut. Not satisfied with the monetary arrangement, Mark demands she submit to him sexually. Alexis orders him from Denver. A police officer arrives and announces that Mark Jennings has died after falling from Alexis' penthouse balcony.

To raise the needed money, Blake sells his assets and mortgages the mansion. In a heated confrontation with Alexis, Tracy quits. Tracy tells Alexis of her ongoing affair with Dex. Alexis is again questioned by the police, who want the details of her affair with Mark. Fallon suffers another painful headache. Sammy Jo informs Steven she intends to stay in Denver and take custody of Danny. An unknown, beautiful woman, Dominique Devereaux, sweeps into La Mirage demanding the finest accommodations. When she attempts to question Fallon about Alexis, Fallon grows suspicious.

Alexis suffers recurring nightmares about Mark's death. Kirby again tries to kill Alexis. When she is unable to pull the trigger, Alexis offers to remain silent in exchange for Kirby's agreement to leave Adam. The truth behind the attempt to unhinge Claudia is revealed. Sammy Jo seduced Hess into handling it, and has returned to him now to solicit his help in regaining her child. In preparation for the wedding, Alexis and Krystle visit the same beauty salon. The two women exchange words, and a mud-slinging melee ensues. While dressing for the wedding, Fallon is gripped by a seizure. She drives off as the ceremony is about to take place. The police arrive and arrest Alexis for the murder of Mark Jennings.

Following a serious traffic accident, Fallon mysteriously vanishes. Dex and Steven bail Alexis out of jail. Sammy Jo attempts to seduce Adam. Alexis flatters Adam by suggesting he work with her defense attorney, Warren Ballard. Dominique's husband Brady arrives at La Mirage and finds his wife suddenly interested in staying in Denver. Steven accuses his mother of killing Mark Jennings and ruining Blake's business. Despite her pleas, Steven tells his father everything. Steven orders Sammy Jo from the mansion. She counters by promising she'll sue for custody of Danny. After duping Adam into letting Danny ride along with her to the airport, Sammy Jo dashes off, kidnapping her son.

Steven accuses Adam of conspiring with Sammy Jo to kidnap Danny. Blake arranges to take out a mortgage on the mansion. He little suspects Alexis has signed the note and will become the owner if he defaults. A cross-country search for Fallon has developed few leads. Warren Ballard and Adam prepare Alexis' defense. Dominique Deveraux makes her singing debut at La Mirage, with Blake and Krystle in attendance. Krystle quickly senses Dominique's hostility toward Blake. Brady declines the Carrington's hospitality as well. Jeff finds a truck driver who gave Fallon a lift to Portland, Oregon, the night of the accident.

To secure financing for his bankrupt company, Blake arranges to see Billy Waite, a notoriously underhanded oil man. Jeff continues his search for Fallon. Impatient with the progress her lawyer is making on her defense, Alexis fires Warren Ballard and retains Adam. Alexis visits Billy Waite in South America under the guise of concern about Blake's misfortunes. As she prepares to leave, the police arrive. She is arrested for fleeing to avoid prosecution and led away by the police. At an isolated religious retreat, Jeff learns Fallon is dead and that she died along with Peter DeVilbis.

In Seattle, Jeff and Blake learn the woman who died in the plane crash with Peter DeVilbis cannot be positively identified, but the ring she was wearing is indeed Fallon's wedding band. Jeff creates a scene at Fallon's funeral. Steven meets Sammy Jo in Los Angeles, where she demands payment of $3O,OOO per month for Danny's return. After Claudia points out his behavior only isolates him from the family, Adam is moved to action. Adam breaks into Sammy Jo's motel room and retrieves little Danny.

Blake visits Dominique at La Mirage to discuss her recent revelation. She tells Blake that her mother was a long-time mistress of his father and has evidence to prove it. At Alexis' trial, a neighbor offers powerful evidence that incriminates Alexis. Along with Mark, she saw a woman on the terrace wearing a cape that has been positively identified as Alexis. Blake is called to testify and states that Alexis would indeed commit a violent act if sufficiently provoked. In a dramatic courtroom scene, Steven is called to the witness stand and he must tell what he knows or protect his mother.

On the witness stand Steven testifies he saw Alexis push Mark to his death. Furious, hurt, and still claiming her innocence, Alexis disowns Steven. Dominique offers Blake $25 million for control of his company. Stunned, Blake offers her 40% of Denver-Carrington for $30 million. Jeff sees other women in an attempt to forget Fallon, but remains obsessed with his ex-wife. Dismissing her attorneys and deciding to represent herself, Alexis takes the stand and testifies she was not wearing the cape that incriminated her. The prosecution, however, proves it had been delivered to her and was found stuffed in a trash bin behind her building. The verdict is at last delivered: Alexis is found guilty.

Adam and Dex vow to prove Alexis' innocence and begin a determined campaign. The woman who testified she had seen Alexis on the terrace with Mark had hosted a party that evening and snapped photographs. The negatives reveal it was Neal McVane who had framed Alexis for Mark's murder. Alexis is freed. Denver-Carrington is back in business. Alexis vows revenge on Dominique when she learns of her new partnership with Blake. Brady is stunned to learn of Dominique's true relationship with Blake. Upon returning home, Alexis receives a visit from a beautiful young woman named Amanda. She is Alexis' daughter.

Amanda insists Alexis acknowledge their relationship and begs her to reveal her father's identity. Alexis tells her it was simply an anonymous ski instructor in Gstaad. Steven and Alexis reconcile and he rejoins Colbyco, where Luke Fuller, an attractive young man, has just been hired as public relations director. Claudia enters Steven's office to find Luke straightening her husband's tie. Amanda goes public with a front page story announcing she is Alexis' illegitimate daughter. Jeff meets an attractive young widow, Nicole, whose late husband was Peter DeVilbis.

Amanda insists Alexis acknowledge their relationship and begs her to reveal her father's identity. Alexis tells her it was simply an anonymous ski instructor in Gstaad. Steven and Alexis reconcile and he rejoins Colbyco, where Luke Fuller, an attractive young man, has just been hired as public relations director. Claudia enters Steven's office to find Luke straightening her husband's tie. Amanda goes public with a front page story announcing she is Alexis' illegitimate daughter. Jeff meets an attractive young widow, Nicole, whose late husband was Peter DeVilbis.

Krystle goes into premature labor and delivers a baby girl, who suffers from respiratory problems. She names the child Kristina after a friend who once saved her life. Claudia is uneasy when Steven accompanies Luke on a business trip. After confiding in Dean Caldwell, he moves to hug her, and the two are soon in a passionate embrace. Amanda overhears Dex tell Alexis to stop hiding the identity of Amanda's father. Jeff finds a photo of Peter DeVilbis in Nikki's hotel room.

Upon learning that he may be Amanda's father, Blake resolves to ask Amanda to take a blood test. Nicole tells Jeff there's a chance Peter DeVilbis may have been with another woman at the time of the crash. Under the pretense of a family outing, Alexis arranges to send Dex and Amanda to a ski lodge. With the tension growing between them, Amanda and Dex begin to fight. Their fury, however, soon turns to passion. Alexis finally arrives and announces the three are bound for London, where she and Dex will marry.

Blake buys back his racehorse Allegre from owner Daniel Reece, who sends Krystle a gift. Furious, she demands to know how he dare approach her after what happened with her sister, Iris. Amanda learns she is Blake's daughter. Blake, meanwhile, has contacted his father, who claims that Dominique is not his daughter. Claudia confesses her affair with Dean Caldwell to Steven.

Krystle reconciles with Daniel, who reveals that his break-up with her sister was amicable. Dominique, bitter over Blake's continued refusal to acknowledge her as a Carrington, considers a number of alternative courses, including a generous offer from Alexis for her share of Denver-Carrington. Claudia moves into La Mirage. Krystle confides to Steven that Daniel is Sammy Jo's father and therefore little Danny's grandfather. Jeff and Nicole find the missing piece of a map that DeVilbis and Fallon had shared in the hope of finding buried treasure. Blake's father suffers a heart attack.

Claudia rebuffs Steven's conciliatory attempts. Tension between Dex and Amanda continues to mount. Baby Kristina is allowed to leave the hospital. Jeff remains intent upon his mission to find Fallon with the help of Nikki, who has fallen in love with him. On his deathbed, Tom Carrington makes amends with Blake, and in a final dramatic gesture, has his will changed. His vast estate is to be divided among Blake, Alexis, and his acknowledged daughter, Dominique, whom he names as executor.

Krystle begins working with Daniel. Blake is adamantly opposed and exchanges harsh words with Reece. Dex is furious with Alexis for traveling to Sumatra to see Blake's father. Alexis learns from Amanda of Dex's experience with Daniel in Vietnam. Jeff and Nikki follow the treasure map to a remote jungle location and find a statue filled with jewels, as well as a woman who has been impersonating Fallon. Jeff awakens the following day and learns that while celebrating, he and Nikki were married.

Krystle launches her new business with the purchase of an Arabian horse. Sexual tension between Steven and Luke mounts. Jeff and Nikki return from Bolivia with the news of their marriage and they move into the mansion. Alexis is intrigued with Blake's recent meeting with a delegation from China. It was arranged by Lady Ashley Mitchell, an internationally known photojournalist and widow of a wealthy British lord. After Lady Ashley and Blake enjoy a lovely dinner together, she impetuously kisses him.

Blake returns triumphant from his negotiations with the Chinese. Alexis vows to buy into the venture. Krystle, uncomfortable with Daniel's increasing attention, avoids him. Blake, absorbed in his business, is distracted by Lady Ashley. Steven's on-going affair with Luke ends abruptly when he decides to return to Claudia. Blake invites Amanda to accompany him on a business trip to Acapulco. Alexis learns of the trip and invites herself and Lady Ashley.

Alexis attempts to persuade the head of the Chinese delegation to hire Colbyco. Blake is surprised to learn Lady Ashley is an Acapulco. Amanda has a romantic fling with Prince Michael of Moldavia. Claudia meets with Luke, asking him to honor Steven's request that they remain apart. Krystle makes a surprise visit to Daniel, who hurriedly hides maps and plans detailing a secret military maneuver. While riding, Krystle is thrown from her horse. Relieved she is unhurt, Daniel kisses her passionately.

Amanda spends the night with Prince Michael and then is heartsick to learn he is engaged. Dex persuades the Chinese delegation to use his company instead of Blake s for an important drilling job. Alexis offers Blake a generous deal in the South Seas. Although suspicious, he accepts. After Claudia spots Steven and Luke at a restaurant, she finally accepts Adam's advances. Dex decides to accompany Daniel on a top-secret military maneuver. Daniel confesses to Krystle he's been in love with her for years.

Tensions between Krystle and Blake mount as their suspicions of one another grow. Claudia regrets sleeping with Adam. Dominique derails Alexis' attempt to buyout her company, but is unable to stop Brady's divorce proceedings. Alexis hires a private detective to investigate the circumstances surrounding Jeff's marriage to Nikki: She learns the girl fabricated the marriage license and deluded Jeff into believing he had married her while drunk. Jeff confronts Nikki, who confesses and leaves the mansion. Dominique is suddenly seized with a violent cough and drops to the floor, unconscious.

Dominique remains in critical condition after collapsing. Luke pays an unexpected visit to Steven. Blake tells his son that he will support him regardless of his sexual persuasion. Krystle and Ashley exchange heated words. Dex returns from his secret mission quite ill, and in his feverish raving, he calls out for Amanda. Alexis calls her former lover, King Galen, a Middle Eastern monarch and Prince Michael's father. She wants to make a marriage match for Amanda and Michael.

Alexis attempts to persuade King Galen to allow a marriage between Amanda and his son. She sweetens the offer by suggesting his country would receive a portion of Colbyco's revenues. Finally, she takes him to bed. Steven tells Claudia that although he still loves her, he is now certain he also loves Luke. Dominique advises Krystle to reconcile with Blake or risk losing him to Ashley. Lady Ashley impulsively kisses Blake and the moment is photographed and sent to Krystle.

Alexis is relieved and Blake is concerned when Amanda suddenly changes her mind and decides to marry Prince Michael. Sammy Jo is revealed to be the culprit behind the compromising photographs. She realizes the scheme to split them apart is useless until she spots a woman who bears an uncanny resemblance to her aunt. Blake returns to the mansion after spending the evening with Ashley, and is surprised to find Krystle has cancelled her planned business trip. Krystle, hurt by what appears to be Blake's betrayal, immediately takes the baby and leaves the mansion.

Claudia flies to Mexico to divorce Steven. Unexpectedly, Adam appears at her hotel and they spend the night together. After Amanda embarrasses Prince Michael at Dominique's party, his patience is exhausted and he leaves her. Jeff's infatuation with Ashley grows. Dex rescues Daniel, who goes immediately to see Krystle. Relieved he's alive, she embraces him and he misinterprets her affection. Blake is enraged. While airborne with Daniel on a private plane, the men fight and knock the pilot from the cockpit, throwing the plane out of control.

Blake and Daniel survive the plane crash. Jeff charters a helicopter and braves hazardous conditions to finally locate the wreckage. Dominique warns Ashley not to jeopardize Blake's marriage. Krystle and Blake finally clear the air and renew their commitment to each other. Amanda reconciles with Prince Michael, and the wedding is back on. Krystle visits Daniel and tells him he is the father of her sister Iris' baby, Sammy Jo.

Krystle accompanies Daniel to New York for his reunion with Sammy Jo, the child he's never known. While looking through photos Ashley snapped on assignment at a rock concert, Jeff is stunned to spot Fallon among the crowd. Steven's upset to see Luke having dinner with another man. Adam alters vital information on an urgent business wire to make Jeff appear incompetent. Correcting Jeff's 'error' at the last minute, Adam gains points with Blake. Before departing for the Middle East, Daniel extracts a promise from Krystle to take care of Sammy Jo should danger befall him overseas.

As Alexis and Amanda emerge from an exclusive bridal salon, a car suddenly screeches to a halt and Amanda is pulled inside. A high-speed chase ensues. As Dex forces the kidnapper's car onto the sidewalk, Amanda breaks free. It is clear that Yuri, the Prince's chief bodyguard, is behind the kidnap plot. Steven requests Luke accompany him to Amanda's wedding. Adam and Claudia profess their love. Dex receives a telegram bearing tragic news. At a Los Angeles police station, a young woman appears who bears a striking resemblance to Fallon.

Dex tells a devastated Krystle that Daniel Reece is dead. Steven is outraged when Sammy Jo decides to fight for custody of her son in court. Amanda and Alexis arrive in Moldavia and are greeted by Prince Michael and his father, King Galen. Jeff proposes marriage to Ashley. Sammy Jo learns that although she's Daniel's beneficiary, her monies will be held in trust with Krystle as executor. Finding former fiancée Elena in Michael's arms, Amanda tosses her engagement ring at the prince and dashes out. Yuri watches from the shadows as Dex comforts her.

Elena confesses to Amanda that nothing happened in the bedroom with Prince Michael. Sammy Jo fits her roommate Rita with a blonde wig and has her practice duplicating Krystle's voice. Fallon has chosen a new name and heads for Denver. Dex is kidnapped by Yuri and his gang as Amanda and Michael recite their wedding vows. Dex breaks free from his captors and heads for the chapel, where terrorists have opened fire on the entire wedding party.